Mortality Charge

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A fee, or deduction in monthly payment, that a person holding a life insurance policy must pay to compensate the insurer for any losses resulting from the potential that the holder will suffer an unexpected death. See Investopedia. The average fee is about 1.25% per year. See Investopedia. The mortality charge, also known as a “cost of insurance” charge (COI) is calculated according to expectations of future mortality. TVPX ARS, Inc. v. Genworth Life and Annuity Ins.

See life insurance.

[Last updated in August of 2020 by the Wex Definitions Team]